What was Allstate's overall financial performance in 2018?

Allstate's 2018 financial performance showed resilience, with increased premiums and underwriting income in its Property & Casualty segment, partially offset by net realized capital losses primarily related to equity investments. Net income applicable to common shareholders decreased compared to 2017 due to these capital impacts and other factors like lower tax benefits, despite growth in premium earned and improved claim frequency in certain areas.

How did the Allstate Protection segment perform?

The Allstate Protection segment, the company's largest, saw underwriting income increase to $2.19 billion in 2018. This growth was primarily driven by higher premiums earned, lower catastrophe losses, and improved auto claim frequency. However, this was partially offset by increased claim severity and operating expenses.

What are the implications of the new accounting standards adopted?

Allstate adopted new accounting standards for the recognition and measurement of financial assets and liabilities, impacting how equity securities and limited partnerships are reported. While these changes affected presentation, particularly in net investment income and realized capital gains, the company managed these transitions effectively. The adoption of the revenue recognition standard also impacted the Service Businesses segment.

What is Allstate's strategy for growth and shareholder returns?

Allstate's strategy focuses on serving customers better, achieving target economic returns, growing its customer base, and building long-term growth platforms through initiatives like telematics and strategic acquisitions (e.g., InfoArmor). The company demonstrates commitment to shareholder returns through common share repurchases and dividends, supported by strong financial ratings and capital resources.

ALLSTATE CORP 10-K FY2018 Annual Report — Revenue, Net Income, EPS

Summary

Allstate Corporation's 2018 10-K report highlights a strong performance in its core property and casualty insurance business, particularly within the Allstate Protection segment, which saw increased premiums and underwriting income. The company demonstrated resilience with a stable combined ratio of 93.6% for both 2018 and 2017, indicating effective management of claims and expenses despite rising claim severity in some areas. Strategic growth initiatives are evident through acquisitions like InfoArmor and PlumChoice, expanding the Service Businesses segment. Financial results were impacted by net realized capital losses in 2018, largely due to equity investment valuations, contrasting with net realized capital gains in the prior year. The adoption of new accounting standards, particularly for financial asset recognition and measurement, influenced presentation but did not fundamentally alter the company's financial health. Allstate continued its commitment to shareholder returns through a significant $3 billion common share repurchase program authorized in late 2018. The company maintains robust financial strength ratings, supported by substantial statutory surplus and capital resources, positioning it well for continued operations and growth.

Financial Highlights

39 data points

Beta

Revenue

$39.81B

Net Income

$2.16B

0.1% Net Margin

EPS (Diluted)

$5.70

Total Assets

$112.25B

Cash & Equivalents

$499.00M

Free Cash Flow

$4.90B

Financial Statements

Beta

Revenue	$39.81B
Interest Expense	$332.00M
Net Income	$2.16B
EPS (Basic)	$5.78
EPS (Diluted)	$5.70
Shares Outstanding (Basic)	347.80M
Shares Outstanding (Diluted)	353.20M

Key Highlights

1Allstate Protection segment delivered strong underwriting income, driven by increased premiums and improved auto claim frequency, despite higher claim severity.
2The company maintained a stable combined ratio of 93.6% for both 2018 and 2017, reflecting effective operational management.
3Strategic acquisitions of InfoArmor and PlumChoice expanded the Service Businesses segment, enhancing the company's value proposition.
4Net income applicable to common shareholders decreased in 2018 primarily due to net realized capital losses compared to gains in 2017, influenced by equity investment valuations.
5Allstate continued shareholder returns with a $3 billion common share repurchase program authorized, demonstrating confidence in future performance.
6The company's financial strength ratings were affirmed by major agencies (Moody's, S&P, A.M. Best), indicating a stable outlook.
7The adoption of new accounting standards, particularly for financial assets and revenue recognition, impacted financial statement presentation but was managed effectively.

ALLSTATE CORP Annual Report, Year Ended Dec 31, 2018

Summary

Financial Highlights

Key Highlights

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